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Boral spends $66M on U.S. brick deal
SYDNEY, Australia (CNN) -- Australian building materials group Boral said Friday it has bought the U.S. brick distribution business of Franklin Industries for $66 million. Franklin Brick Co. is the largest independent brick distributor in the United States, with annual sales of about $120 million. Its 23 distribution facilities are in the states of Georgia, Tennessee, Alabama, Kentucky and Ohio. Franklin is already Boral's largest U.S. customer, accounting for about 13 percent of its brick volumes. In turn, Boral bricks represent a majority of Franklin's brick sales. Boral USA president Dennis Brown said the deal achieved the company's goal of selling 50 percent of its bricks directly to its end customers. The acquisition is expected to lift Boral's U.S. earnings before interest, tax, depreciation and amortization by $13 million from 2003-04 onwards. Shares in Boral are 0.23 percent higher at A$4.28 in Friday afternoon trade, but are down 1.6 percent so far this year. The broader market, measured by the S&P/ASX200, is up 0.29 percent after hitting a three-year low Thursday.
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